ESPN filed a case against Verizon Communications Inc. (NYSE:VZ) alleging that its FiOS TV packages infringes a contract related to distribution of the sports TV network. The telecom company started offering the new plans starting at $55 per month. As per the new package, the viewers can take a package of basis set of channels, including some cable networks and broadcasters. Also, they can get the channels in different categories like lifestyle, kids and sports.
The new packages
Verizon’s new FiOS TV packages are designed to provide additional flexibility to viewers. However, several media companies are stating that the package infringes their distribution agreement with Verizon. The latest buzz in the media industry is related to the process of selling channels to subscribers. The users demand packages with lower bills. At the same time, they are using the streaming services Hulu and Netflix. Verizon provides its services to more than 5.7 million subscribers in the U.S.
The case
ESPN filed a lawsuit stating that it is looking for new ways to offer high quality content to users on several platforms. However, it should be done as per the agreed terms and conditions. It wants the pay-TV provider to abide by the terms of the deal. It highlighted that distributors can create smaller TV packages for subscribers that exclude its networks. But they cannot put the channel into a separate sports group.
The explanations
Stating its case, Verizon Communications Inc. (NYSE:VZ) said that it intends to provide users with more choice and what it is doing is as per the terms of the deal. The management said that it appears as if ESPN are suing users to accept a one-size-fits-all bundle. Verizon mentioned that CBS Corp. has permitted its sports channel to be included in a separate group of sports networks. There are also some other content companies that have termed Verizon’s plans as infringing programming deals.
